Quiz: Going Solo—Is the Freelance Life for You?

Perhaps you’re between jobs and considering your next move, or employed but thinking about leaving to start your own business. Taking the freelance plunge may seem tempting for a number of reasons, such as saving commuting costs, working in your PJs, being home for your kids, and flexibility.

In an August 2012 survey of 1,500 freelancers commissioned by International Freelancers Day, 28% of respondents cited a flexible schedule as the primary reason for going freelance. And 64.1% of women in the study reported being happier since they started freelancing.

Before you contemplate joining their ranks, take this quick quiz to analyze your personality and determine if you can handle some of the not-so-great elements of working on your own.

Choose one of each of the following two options:

A: You prefer being part of a team, and enjoy the support and feedback.B: Solitude equals bliss. You accomplish more on your own and, better yet, you don’t have to answer to anyone.

A: You like the security of a steady paycheck and benefits.B: You’d trade security for greater earning potential, even if your income fluctuates.

A: You value the routine of a 9-to-5 schedule.B: You’ll gladly work evenings and weekends to complete a project.

A: The idea of losing clients or not being paid on time stresses you out.B: You thrive on change, and you have no problem demanding what you’re owed.

Mostly “A” responses mean you’re probably not as cut out for the freelance life as those who choose “B.” Thinking of going freelance? “You have to be extremely organized, assertive, self-motivated, and you can’t be a shrinking violet,” said New York-based career coach Rebecca Kiki Weingarten. “If you can’t speak up for yourself, or if you’re uncomfortable discussing money and collecting on invoices, this isn’t for you.”

It’s also crucial to make what Weingarten calls an “occupational identity shift” from employee to business owner. “You are the company now, the boss. You have to set the rules, the time, and the workload, and enforce it. If you want something done you have to do it,” Weingarten said. On any given day, in addition to the project at hand, this will include accounting, marketing, promotion, and acquiring new business—in which 20.8% of the International Freelancers Day survey respondents called their biggest challenge.

The key to a successful transition to freelancing is plenty of advance planning.

The key to a successful transition to freelancing is plenty of advance planning. “Be your own venture capitalist: Go into it with a cushion of funds, and set aside the amount of money you’ll need each month to allow for fluctuations in payments,” advised Weingarten. You’ll need to determine your rates (hourly, daily, per project) and be prepared to play bill collector if necessary—as well as budget for the best individual health insurance plan you can afford.

It’s also vital to have a system in place to replace the built-in one at your company. “You need an informal board of directors, friends and family, a business mentor, colleagues—including virtual connections made via user groups, LinkedIn, and Facebook—to turn to for advice and new business leads,” said Weingarten.

She stressed the importance of having ample supplies and equipment, like a back-up computer, and a repair person on speed dial. “Plan in advance and budget for every terrible eventuality, so you won’t panic,” she said.

As long as you’re prepared to handle the isolation, volatility in income, and erratic workflow, you’ll be rewarded with the creative liberty and freedom from office politics, corporate culture, and dress codes that come with being your own boss.